The Croatian - who led Die Roten to the German league and cup double last season - was dismissed on Sunday, after meeting CEO Karl-Heinz Rummenigge, president Uli Hoeness and sporting director Hasan Salihamidzic.
His departure comes just over 24 hours after Bayern were thrashed 5-1 by his former club, Eintracht Frankfurt, on Saturday.
That result was only Bayern's second defeat in the Bundesliga this season in 10 games.
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